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Should Value Investors Buy Bunzl PLC (BZLFY) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Bunzl PLC (BZLFY - Free Report) is a stock many investors are watching right now. BZLFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 16.51, which compares to its industry's average of 29.69. Over the last 12 months, BZLFY's Forward P/E has been as high as 21.91 and as low as 8.99, with a median of 17.73.

Investors should also recognize that BZLFY has a P/B ratio of 4.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BZLFY's current P/B looks attractive when compared to its industry's average P/B of 7.61. Within the past 52 weeks, BZLFY's P/B has been as high as 5.05 and as low as 2.27, with a median of 4.51.

Value investors will likely look at more than just these metrics, but the above data helps show that Bunzl PLC is likely undervalued currently. And when considering the strength of its earnings outlook, BZLFY sticks out at as one of the market's strongest value stocks.


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